SURGUTNEFTEGAS BOOSTS GAS PROCESSING BY 8.6%

In 2004, the Company’s Gas Processing Division (GPD) increased gas processing by 8.6% to 4.1 bcm.

The output amounted to over 3.8 bcm of dry residue gas, 486,000 tons of liquid hydrocarbons including 386,000 of natural gas liquids, 7.2 thousand tons of propane, 92.6 thousand tons of stable gas naphtha and distillate.

Aleksei Vassilyev, Gas Processing Division Head of Surgutneftegas, says: “We have been affiliated with the Company since early 2002. Over the last three years gas processing has been raised by 45%. Today we process about 29% of all gas produced by Surgutneftegas.

Meanwhile, output of natural gas liquids, the most essential petrochemical stock, increased by 44%, propane – by 54%, stable gas naphtha and distillate – by 42%.

Major plans of the Division include putting into operation propane gas cylinders filling unit and the third phase of gas processing facilities with 3 bcm/year capacity, expanding tank farms and constructing a railroad spur with 500,000 tons/year capacity liquid hydrocarbons loading rack.

As early as in 2006 processing capacity will increase up to 7 bcm/year. Feasibility of these projects is justified by sound investments and developed marketing routes”. In 2004, financing of gas processing development programs estimated at USD 13.5 mn. Investment in GPD reconstruction including upgrade of current and construction of new facilities will amount in 2005 to USD 59 mn.

Press Service of OJSC “Surgutneftegas”